Subsequent Event |
3 Months Ended |
|---|---|
Mar. 31, 2017 | |
| Subsequent Events [Abstract] | |
| Subsequent Event |
SUBSEQUENT EVENTS
Refranchising of China Bottling Operations
On April 1, 2017, the Company sold a substantial portion of its bottling operations in China to the two local franchise bottlers. We received $703 million on March 31, 2017 in advance of the closing, which was reflected in the line item accounts payable and accrued expenses in our condensed consolidated balance sheet as of March 31, 2017. The sales of the remaining bottling operations and related cost method investment are expected to close in the second quarter of 2017.
Japanese Bottler Merger
On April 1, 2017, Coca-Cola West Co., Ltd. ("CCW") and Coca-Cola East Japan Co., Ltd. ("CCEJ") integrated their businesses to establish Coca-Cola Bottlers Japan Inc. ("CCBJ"). In exchange for our existing equity interests in CCW and CCEJ, we received an approximate 16 percent equity interest in CCBJ.
North America Refranchising
On April 1, 2017, the Company refranchised the Southwest operating unit of CCR, which includes Texas and parts of Oklahoma, New Mexico and Arkansas, in a transaction with Arca Continental, S.A.B. de C.V. ("Arca"). In conjunction with the transaction, Arca contributed its existing beverage business to AC Bebidas, S. de R.L. de C.V. ("AC Bebidas"), a subsidiary of Arca. CCR contributed its Southwest operating unit to AC Bebidas in exchange for an approximate 20 percent interest in AC Bebidas. Additionally, CCR contributed or expects to contribute approximately $150 million of cash, net of cash to be received, subject to post-closing adjustments. Arca owns the remaining interest in AC Bebidas. As a condition to the closing of this transaction, we anticipate acquiring certain trademarks and a related business from AC Bebidas in the second half of 2017.
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